Margin and markup calculator

Check the return on one unit and choose a selling price. A cost of PLN 80 and a price of PLN 100 give a 20% margin and a 25% markup. The percentages use different bases.

For sole traders and companies in Poland. Business arithmetic, without tax calculation. Checked: 13 November 2026.

Calculate price, margin and markup

Use the same basis for cost and price, normally net of recoverable VAT. Include costs attributable to each unit. This calculator does not calculate VAT.

Selling price

PLN 100.00

Price less unit cost
PLN 20.00
Margin
20%
Markup
25%

Margin = (price − cost) / price × 100%. Markup = (price − cost) / cost × 100%.

How to calculate your margin or price

  1. 1. Enter the unit cost

    Add the purchase or production cost and costs attributable to one unit, such as packaging. Use a consistent basis, normally amounts net of VAT that you can recover.

  2. 2. Choose the calculation

    Enter a known selling price, a target margin or a target markup. With a PLN 80 cost, a 20% margin and a 25% markup both produce a PLN 100 price.

  3. 3. Review before quoting

    Price less unit cost is not your company's net profit. Allow for overheads, commissions, returns and taxes. If a cost depends on the selling price, such as a percentage commission, first calculate it for the proposed price.

What the results mean

  • Margin divides price less cost by the selling price. Markup divides the same difference by cost.
  • Amounts are in PLN, rounded to the grosz. A target price is rounded upwards so it does not fall below the requested percentage.
  • The calculator does not determine VAT rates, income tax or what a customer will pay.
  • Non-recoverable purchase VAT may form part of your cost. Prepare figures that match your circumstances.

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Margin and markup questions

What is the difference between margin and markup?

With a PLN 80 cost and PLN 100 price, the difference is PLN 20. Margin is 20 / 100 = 20%; markup is 20 / 80 = 25%. The same percentage normally produces different prices.

How do I price for a 30% margin?

Divide cost by 1 minus 30%. A PLN 70 cost gives 70 / 0.70 = PLN 100. Adding 30% to cost would give a 30% markup, not a 30% margin.

Should I enter net or gross amounts?

Use a consistent basis. A business recovering VAT normally compares net cost with net selling price. Include non-recoverable purchase VAT in the cost where appropriate. The tool does not determine your right to deduct VAT.

Can the margin be negative?

Yes. Selling for PLN 80 when the cost is PLN 100 gives a PLN 20 loss, a margin of minus 25% and a markup of minus 20%.

Is this the net profit of my sp. z o.o.?

No. It shows only the difference between the entered selling price and unit cost. Net company profit also depends on other expenses, taxes and the company's wider activity.

A price-planning tool. Results depend on the costs you include and do not replace your company's profit and loss account.